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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EXECUTIVE SUMMARY:
- A 25bps rate hike to 2.00% could be the last in the cycle
- Short-term price pressures are clearly alleviating, however medium-term inflation still an issue.
- The Bank is unlikely to drop the message that more tightening may be required ahead
Our full preview including a summary of sell-side views can be found here:
A 25bps rate hike to 2.00% could mark the final tightening step of the cycle for the Swiss National Bank, with markets well priced for this to mark the top of the cycle. While the bank downgraded their forecast for near-term inflation in June, medium- and longer-term inflation expectations remain elevated above the bank’s target. This left the board likely to raise rates further in September, and retain a preference for a strong currency.
Figure: CHF OIS shows markets believe SNB near top of the cycle
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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